MANAGE

CONTINUOUS
IMPROVEMENT
PROCESS (KAIZEN)
Presented by: Nursedin
Hussein
 Contents
Diagnose the current status
Design an effective continuous improv
ement process
Develop Change Capability

Implement improved processes

Establish direction & Control
LO 1: Diagnose the current status
1. Analyzing internal and external environment

If you're not constantly searching for pro

blems, how will you know if they exist?
Most strategists believe that firms must b
e prepared to respond quickly to problem
s in order to be successful in the future.
 Cont…

Both internal and external organizational en

vironments must be constantly and carefully
monitored.
SWOT analysis.
 Case study
friends agro industry chicken feed factory
 Business category: poultry
 Main product: Poultry ,Chicken Feed and Chi
cken Cage
 Number of employee: 70
 Company organization : Cooperative
 Capital: 3 million
 Raw material:95% local
 Production type: 20% make to order and 80%
make to stoke
 Adders : Yeka sub city, Wereda 7
 SWOT Analysis
• Produce quality product • Low production in
• Have good Enovation ability respect to
• Good costumer follow up attaining the
goal( quota of
production )

Weaknes
Strength
s

Opportu
Threats
nities

• Have access of loan from small • Dieses like bird

micro finance bank and government flue,
• Competiveness
• Raw material cost
fluctuation
 2. Recognizing problems
To be aware that a problem exists b
efore you can solve it.

It is from the information gathered

in analyzing the environment that y
ou will learn that a problem exists.
 Example:
• When Toyota's production leader, began an
alyzing the firm's manufacturing cost infor
mation in the early 1990s, he intuitively sen
sed that something was wrong. The firm si
mply wasn't saving as much money as it sh
ould from all of the automation and robotiz
ation that it had just completed. He believed
it was because robots were being used whe
n human beings could do the job just as wel
l, at less cost.
 3. Analyzing problems
a. Making Assumptions
It is necessary to make assumptions about
the condition of future factors in the probl
em situation.
Remember that assumptions may be a maj
or constraint on the potential success of a s
olution.
For example, what will the state of the 5S w
hen the new implementation to be practiced?
 Cont..

b. Break down problems

Once it’s been recognized that there’s in fac
t a gap or a problem between the current and
ideal situations, more often than not the reas
ons for this gap are many as well as ambigu
ous.
The first steps we need to take are to breakd
own and organize the original large problem
into smaller, more concrete problems.
 Cont…

Tools to Break down the Problem

 There are many tools that can help you v
isualize the what, where, when and who
of a problem such as
o Pareto Diagrams
o Tree Diagrams
o Pie charts
o Scatter plot diagrams.
Tree diagram: Break down problems on customer not get
ting enough parts
 3. Generating Countermeasure
It is in this stage that most of the creativity techniques
processes is very helpful.
To the extent to formulate useful Countermeasures y
ou can maximize the chances that a problem will be so
lved satisfactorily.
The purpose of generating more countermeasure is to
ensure that you reach the selection stage of enough pot
ential solutions.
Develop countermeasures for improve training of new employees

• Have new employees shadow

experienced employee for tow weeks
• Improve on boarding training
• Improve standard work station
• Utilize skill matrix and ensure no one
does a job they are not trained on
• Video tape the right way of doing a job
and share with new employees.
 4. Selecting Best Countermeasure
• Decision making should be based on a s
ystematic evaluation of the alternatives
against the criteria established earlier.
• Pareto Diagram is key for determinin
g the possible outcomes of the various
Potential solutions.
 Cont…

• The better job is done in generating

more countermeasures and determini
ng their possible outcomes, the greate
r the chance that an effective choice
will be made.
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LO 2: Design an effective continuous improvement process

o The Values, the Mission and the Goals of t

he continuous improvement process.
o Prepare Kaizen management model.

o Choose an effective Kaizen tools for appli

cation.
o Prepare Master and detailed plans
1.Design a KMS Model
 Cont..
Mission and targets continuous improv
ement process
I. Quality
What is Quality?

Which one is quality for you?

o Degree of excellence. (Oxford dictionary)

o Defined by fitness to purpose. (Juran)

o Conformance to requirements.(Crosby)
In Summary
Quality is defined by the customer and such wi
ll change over time, often in unpredictable wa
ys.
Quality is associated with creating customer v
alue.
 Quality good or service meets or exceeds the r
anges of customers exceptions.
As a complex concept, Quality can only be ad
dressed by the whole organization working tog
ether.
ii. Cost:
 Defined the amount of expenditure incurred
on, or attributable to a given thing.
 refers to the overall cost of designing,
producing, selling, and servicing the product
or service
 Elements of cost:
1. Material
Direct:
 The material which becomes an integral part of
a finished product.
E.g. sheet metal for making septic tank
 Cont..

Indirect:
 The material which cannot be conveniently ass
igned to specific physical units is termed as ind
irect material.
E.g. Consumable stores, oil and waste, pri
nting and stationery material etc.
 Cont…

2. Labor
Direct:
 The labor which actively and directly takes part in
the production of a particular item.
 described as process labor, productive labor, oper
ating labor, etc.
Indirect:
 The labor employed for the purpose of carrying o
ut tasks incidental to goods produced or services
provided.
E.g. Wages of storekeepers, foremen, timekeepers, di
rectors’ fees, salaries of salesmen etc.
 Cont..
3. Expense
Direct Expenses
 These are the expenses that can be directly, conv
eniently and wholly allocated to specific cost cen
ters or cost units.
 Chargeable expenses.
Indirect Expenses
 Cannot be directly, conveniently and wholly allo
cated to cost centers or cost units
E.g. Rent, lighting, insurance charges etc.
III. Delivery:
Customer Request Date: Date which customer r
equests
Customer Commit Date: Date which supplier co
mmitted to deliver product to customer
Reasons of delay of the date of delivery
 Mistake of setting the date
 Shortage of raw materials and/ or parts
 Shortage of production capacity
 Shortage of manpower
 Cont…
How to answer the date of delivery?
Set the possible day of the date of commitment
considering
• Capacity of manufacturing,
• Raw materials and parts
• Necessary time for manufacturing.
Keep the date of delivery which customer com
mitted strictly.
Try to put close the date of commitment to the
date of request with in stock.
 People involvement
 People at all levels are the essence of an organiza
tion and their full involvement enables their abili
ties to be used for the organization’s benefit.
This requires:
• Employees must be treated with dignity and res
pect.
• They must be trained to build competence wher
e required.
• Each employee must know what exactly is requi
red to be done and where possible must be able t
o assess the quality of his work.
• Fear must be totally removed from the organiz
ation and employees must be encouraged to bri
ng out weakness in the system.

• Empower employees to take appropriate action

in their area of work for improvement.

• Involve employees in quality plans and draw u

pon their intimate knowledge of processes for i
mprovement.
 Process effectiveness and efficiency
Improve effectiveness –the degree to which some
thing is successful in producing desired results; wi
th better decisions.

 Improve efficiency – by designing a better proce

ss to give more output with the same inputs;
E.g. If were able to meet our daily production wi
th less energy and fewer operator.
 A desired result is achieved more efficiently and ef
fectively when related resources and activities are
managed as a process.
 Puzzle: Jumping Coins
• Ten coins, numbered 1 to 10, lie in a stra
ight line on the table.

1 2 3 4 5 6 7 8 9 10
• The aim is to make five piles of two coins
in five moves. But each coin may jump ov
er two coins only and then land on the th
ird. The coins may jump in both direction
s. Who will do in effective and efficient way?
 Lean support system
 Lean is a philosophy that seeks to eliminate wa
ste in all aspects of a firm’s production activitie
s:
 Human relations
 Vendor relations
 Technology
 Management of materials and inventor
y.
 Principles of Lean
1. Value :
 Specify what creates value from the customer’
s perspective. (Know your Customer’s Need)
 Defined by the ultimate end customer.
2. The value stream:
 Identify all the steps along the process chain.
 Line up value creating activities in the best se
quence. (Standardization of operations)
 Cont..
3. Flow:
 Make the value process flow.
 Conduct these activities without interrupti
on.(Mura Elimination)
3. Pull :
 Make only what is needed by the custome
r (short term response to the customer’s ra
te of demand).
 Conduct these activities whenever someon
e requests them.(JIT)
 Cont…

5. Perfection :
 Strive for perfection by continually attemp
ting to produce exactly what the customer
wants.
 Perform these activities more and more eff
ectively. (Complete elimination of Muda)
 Gemba Kaizen Workshops
 ‘Gemba’ refers to the place where value is crea
ted and the general notion is that the best creati
ve improvement ideas will come simply from g
oing to the Gemba.

 ‘Gemba Kaizen’ is an activity that takes manag

ement to the frontlines to look for waste to elim
inate and opportunities to practice.
 Effective kaizen tools

1. 5S (a visual workplace management)

 5S is a fundamental tool that serves as the found
ation for many tools such as TPM (Total Product
ive Maintenance), and Waste Management.
 JIT
 Just-in-time (JIT) concept was first developed
and implemented over a span of many years b
y Toyota Motor Corporation under the designa
tion of the Toyota Production System (TPS).
 Producing and/or delivering only the necessary
parts, within the necessary time in the necessar
y quantity using the minimum necessary resou
rces.
 Cont..

• Its all-encompassing goal is to enable pro

duction of a variety of end items in a time
ly and efficient manner, smoothly synchr
onized with the production and delivery o
f component materials and without keepin
g extra WIP and finished goods inventor
y.
 Three Pillars of Just-In-Time
Smoothing of volume and variety
 Production leveling is smoothing of volume as well
as variety to achieve uniform plant loading is imper
ative for JIT implementation.
Development of a flexible, multi-skilled workforce
 Under one-piece flow production, different operati
ons are potentially required for each succeeding ite
m being produced.
Implementation of continuous improvement
 To achieve defect-free production, JIT production s
ystems emphasize continuous improvement.
In general JIT has the following benefits;
 Reduction in inventories
 Improved quality
 Shorter lead times
 Lower production costs
 Increased productivity
 Increased machine utilization
 Greater flexibility
 Kanban (signboard)

 Kanbans are communication signals that contr

ol inventory levels while ensuring even and co
ntrolled production flow.
 Cont..

 Kanbans are used in Lean production to ensur

e that flow is pulled by the next step and a vis
ual indicator signals the need for inventory or
activity.
 These steps enable production to respond dire
ctly to customer needs without producing exc
ess inventory or requiring further work.
Kanban system
 2 Card Kanban System

1. Production Kanban System

• A signal authorizing the production of items to
replenish those consumed downstream.
 2. Withdrawal Kanban System
 Controls who moves an item, where it’s move
from and to, when it’s moved, and what amou
nt is moved.
 2-Card Kanban System Calculations
 There are 4 key variables used in calculation.
1. Average Daily Demand Variable (AD)
 Assumes production smoothing has been do
ne with averaged mix and volumes across a s
et period of time.
 If your demand variation is much larger than
this you’ll need to focus on smoothing it bef
ore attempting to implement a kanban syste
m. (Production variation 10% is considered)
2. Replenishment Lead Time Variable (RT)
 It is the time lapse from the order signal to t
he replenishment of material.
 Replenishment time may include Kanban ca
rd collection time, Kanban card, delivery ti
me, processing time, waiting time, transport
time between plants and the time to place pa
rts at point of use.
 It’s important to realize that the replenishme
nt time is not the same as lead time.
 Safety Factor Variable (SF)

• Failure factors such as downtime, quality losse

s, transportation delays, weather delays, and an
y other stoppages.
• For example, let’s say we know, based on histo
rical performance, we’ve experienced 5% dow
ntime, 3% defects, and 2% of delivery delays.
When we sum this up we arrive at a 10% safet
y factor.
Calculating the Number Kanban card Within
the 2-Card System
 AD=Average daily demand
 RT=replenishment time
 SF=Safety factor
1. Assuming an Average Daily Demand of 65 units, a
Replenishment Lead Time of 5 days, a Safety Factor
of 5%, and a Container Quantity of 15, how many K
anban Cards are required?
Answer:
AD=65units/day
RT=5days
SF=5%=0.05, CQ=15
# kanban card=AD*RT(1+SF) = 65*5*(1+0.05) = 23
CQ 15
Therefore, the number of production and withdrawal
kanban is 23.
 Exercise

2. Assuming an Average Daily Demand of 2000

units, a Replenishment Lead Time of 10 days,
2% downtime, 1% defects, and 1% of deliver
y delays and a Container Quantity of 1000, h
ow many production Kanban Cards are requir
ed? What about withdrawal kanban?
 Mistake proofing (Poka-yoke)
A poka yoke is a Japanese term that means “mist
ake proofing”
 All inadvertent defects can be prevented from
happening or prevented from being passed alo
ng.
 Cont…
Mistake proofing (Poka-yokes) use two approaches:
1. Control systems
 Stop the equipment when a defect or unexpecte
d event occurs.
 This prevents the next step in the process to oc
cur so that the complete process is not perform
ed.
2. Warning systems
 Signal operators to stop the process or address the
issue at the time.
The different methods for Poka Yoke systems are
as follows:
 Contact methods are simple methods that detec
t whether products are making physical or energ
y contact with a sensing device.
E.g. USB port
 Cont…
Fixed-value methods
 Normally associated with a particular number
of parts to be attached to a product or a fixed n
umber of repeated operations occurring at a pa
rticular process.
E.g. Tightening of Bolt (number of rotation)
 If each crayon is present in each box; if a cr
ayon is missing.

Box of crayon
Motion-step method
 senses if a motion or step in the process has
occurred in a particular amount of time.
 It also detects sequencing by utilizing tools s
uch as photoelectric switches, timers, or barc
ode readers.
 How make simple home made pokayoke (Mistake proofing)?
 Putting the mobile phone (on-charge) inside a shoe makes it more lik
ely, that it will be remembered when going out:

• If the batteries are dead, or aren’t in the camera, keep the battery com
partment open.
 Investigation and analysis tools
A. 7 QC tools

B. Affinity diagram:
 Is a tool for looking at patterns and for gro
uping and summarizing ideas.
 It is also known as the silent sorting techni
que, and is most commonly used at the end
of a 'brainstorming' session where many dis
parate thoughts have been collected.
 Cont…

Preparation of an Affinity Diagram

1. Determine the theme.
2. Collect factual data for the determined theme.
 Collect data, opinions, and creative ideas
 is best stated in the (subject + predicate) for
m
3. Write the above verbal information onto card
s, called data cards, one piece of information
per card.
4. Shuffle the data cards, then lay them out on a
flat area.
5. Double-check that these groupings are the mo
st appropriate.
6. Consolidate these small card groups into larg
er groups. The card with the new expression i
s called an affinity card.
7. Repeat steps (D) through (F) until all data car
ds’ possible affinities are exhausted.
8. Position the bundled/consolidated cards on a lar
ge sheet of paper according to their relationships.
9. Maintaining the groups, strategically spread out
the affinity cards and draw lines of relationship.
Affinity Diagram of House Cleaning
C. Failure mode and effects analysis (FMEA)
 Is a systematic approach that identifies poten
tial failure modes in a system, product, or m
anufacturing / assembly operation caused by
design or manufacturing / assembly process
deficiencies? (use software).
D. Gap analysis
 Gap analysis provides a detailed breakdown
of both the qualitative and quantitative aspe
cts of the difference between ‘what is’ and
‘what is desired’.
IDEF3 methodology
 IDEF3 model was created specifically to mode
l process. It enables an expert to communicate
the process flow of the system by defining a se
quence of activities and the relationship with t
hem.
• IDEF3 diagram Control IDEF3 diagram has two component that is box (r
epresent function) and arrow (represent interface).
The As-Is process of Armchair production using IDEF3Model
Cutting Metal
 LO 3: Develop Change Capability
1.Kaizen training plan
I. Kaizen training
 Training is a planned procedure designed to improve
the effectiveness of people at work.
 Both training needs analysis and planning training ar
e covered in detail in developing yourself and others
in this series.
II. Your role in the Kaizen training process
 You would need to draw on a number of training met
hods in order to ensure that the new starters have abs
orbed all the new knowledge and are able to take on t
heir new roles quickly and efficiently.
III. Structure of Kaizen training session
 Setting the section
 Introducing the subject:
 Explaining things in detail:
 Summarizing:
 Practicing:
 Checking skills and knowledge:
 Setting the trainees to work:
 Following up:
IV. Designing and using visual aids
V. Kaizen Training methods
 Demonstrations
 Presentations and discussions
• Giving presentations
• Discussion
• Video session
 3.Supervision capability
A. Working with the service user at arm’s len
gth (near to your customer)
 Develop the ability to work with the perce
ptions and reactions of the supervisee for
ming much of the content and keeping the
service user focus at near your area.
 The process of becoming a supervisor inv
olves developing the ability to stand back
from using one’s own knowledge and skil
ls with clients.
B. Knowledge for supervision practice
 Supervision comes from repeated instances
of encountering problems for which routine
solutions and responses do not exist.
 Solving problems in professional life includ
es various phases of examining and definin
g the problem, finding and implementing po
tential solutions, trying these in action and e
valuating the outcomes.
C. Defining process and role
 The third task facing a new supervisor is to
distinguish between the process of supervis
ion and the role of the supervisor.
 Individual leadership capability
A. Supporting and encouraging the individual
 One of the best parts of belonging to a team
is that you aren’t on your own.
 In the best teams, each member can look to t
he others for assistance and encouragement.
B. Assigning tasks appropriate to the membe
r’s abilities
tasks that are too easy:
tasks that are too difficult:
C. Making clear the job roles of the team me
mbers
 Work not getting done is a common sympto
m of uncertainty over job roles.
 When a task is apparently ignored or postp
oned without reason, the leader may have t
o make plain what needs to be done, who s
hould be doing it, and (if necessary) how, w
hen and where it should be done
D. Assessing performance
 Assessment is typically a key task for a team l
eader. Try the next activity, to see how well yo
u match up at the moment.
E. Protecting the individual
 Individuals may need protection from other
team members, from other teams, from outsi
de interference – or perhaps from themselve
s!
 It’s easy to conjure up an image of a mother
hen protecting her chicks, but this analogy is
perhaps a little off the mark..
 LO 4: Implement improved processes

The Steps of process improvement

1. Capture the performance of the current proc
ess
 The team should produce a more detailed map
of the ‘as-is’ process to facilitate an accurate u
nderstanding of the current process.
 The process improvement team should collect
data on the current performance of the process
to be improved.
2. Quantify and prioritize the process improvem
ent possibilities
 Data is gathered to identify opportunities, qua
ntify problems, measure results and provide in
formation to enable situational and trending a
nalyses to be carried out using tools and techn
iques appropriate to the improvement initiativ
e.
3. Identify improvement options
 The process improvement team should develop
potential improvement options that:
• Meet the goals set;
• Meet customer requirements;
• Deliver value to the organization;
• Take into account any constraints such a
s regulatory requirements.
Action words should be used to define improve
ment options similar to the following examples.
Eliminate a task that is no longer needed suc
h as preventative maintenance on obsolete ins
talled equipment.
Reduce surveillance time by using performan
ce history to extend frequencies.
Transfer tasks to more cost-effective employ
ees.
Change working hours from five days to fou
r days.
Combine tasks into one evolution such as val
ve and actuator motor maintenance.
Rearrange work to better fit scheduled resou
rces.
Simplify the method used for fire protection
equipment inspections.
4. Map the improved process
 Implementation should focus on an improve
d process that makes significant progress to
wards the ideal.
 The team should map improved processes s
o that the changes can be easily identified w
hen compared to the current process. “To b
e” process (IDEF3 methodology)
 Mapping of the improved processes can tak
e place in an earlier step if it is more logical
to do so.
5. Plan the implementation of the improved process
 The implementation of the improved process
should be fully planned and resourced using
different techniques to manage each improve
ment.
 Each major activity of the project plan shoul
d be identified and then broken down into tas
ks and responsibilities.
 The skills and resources (equipment, people,
and money) necessary to implement the impr
ovement should be identified.
6. Formalize and implement the improved process
 The improved process should be fully i
mplemented only after all supporting d
ocumentation has been formalized and
is in place.
 Process changes may be formalized in
documents such as procedures, policie
s, work orders, training programs, and
guidelines.
7. Monitor and measure implementation
 It is essential to monitor and review th
e implementation of process improvem
ents using the previously identified per
formance measures to demonstrate suc
cessful implementation.
 The SMART measures for each impro
vement that were identified earlier sho
uld be monitored to ensure that the tar
gets are achieved.
 LO 5: Establish direction & Control

System audit tools

1. 5S audit
2. patrol system
3. Benchmarking (internal and external)
 Benchmarking is a methodical process invol
ving careful research and an understanding o
f our own processes, products and services.
 The purpose of benchmarking is to improve
our own performance.
 It is with this knowledge that we are ready t
o seek to learn how others perform well.
 Benchmarking itself provides us with a prov
en methodology for learning.
4. Key performance indicators (KPIs)
 KPI provides the most important p
erformance information that enabl
es to understand whether the orga
nization is on track toward its stat
ed objectives or not.
 Help organizations understand ho
w well they are performing in rela
tion to their strategic goals and obj
ectives.
Implementing and Using KPIs Effectively
1. Creating good key performance questions
(KPQs)
2. Deciding on the Right KPIs
3. Deciding on How to Collect the Data
4. Finalizing Your KPIs: Applying the KPI D
esign template
 A3 Performance control
 The A3 report was developed as a decisio
n-making tool in the 1980s by Toyota Mot
or Corporation.
 It refers to a European paper size that is us
ed to encompass various pieces of importa
nt information on a single page.
 The A3 format is now commonly used as the t
emplate for three types of reports:
Proposals
Status
Problem-solving
 The A3 document provides a structure and a c
onsistent format for communications and probl
em-solving methods.
Benefits of using A3 Reports
Organizations and Process Improvement Teams
use A3 Reports to:
 Provide a logical thinking process
 Clearly present known information objective
ly
 Focus on and share critical information
 Align efforts with strategy/objectives
 Provide a consistent approach throughout th
e organization
 Provide a powerful problem-solving process
How to Create an A3 Report
Following are the steps to take when creating an A3
Report:
1. Identify the problem or need.
2. Understand the current situation/state.
3. Develop the goal statement or target state.
4. Perform root cause analysis.
5. Brainstorm/determine countermeasures.
6. Create a countermeasures implementation plan.
7. Check results and confirm the effect.
8. Update standard work.
FIGURE: A3 Report
Thank you